New GL Configuration

- A reference document

Prepared by Anand Datla

TS NA
Capgemini, Bangalore

Introduction
The New Ledger is a new feature in the ECC versions of SAP. The new functionality adds flexibility to the
system as well as creating new capabilities. The following are the features of New GL Functionality
1. Segment Reporting real time document splitting eliminates the need for periodic transfer of
balances between profit centres.
2. Real time integration between CO and FI eliminates periodic reconciliation.
3. Parallel Ledgers replaces the special ledger functions in erstwhile SAP editions.
4.

Standard Enhancement and Extensibility Extended data structure enables custom fields for use to
meet client specific reporting and analysis needs.

Graphic Representation of New GL Features

Legal and
Managemen
t

Segment
reportin

Real Time
Integration
CO => FI

New GL in
mySAP

Transparency
and

R3 Disconnected Units

Classic GL
Legal
requirements

Standard
Enhancement
and Extensibility

COST
Ledger

EC - PCA
Management and
segment reporting

Special Ledger
Multidimensional,

Reconciliation
Ledger

Simple
Representatio
n
of Parallel

Accelerated
Period End
Closing

mySAP ERP- Integrated Approach

General Ledger supports

Legal requirements

Mgmt. and Segment
reporting

Extensibility by industries

Extensibility by customers

Balanced Books Multiple

Configuartion Steps
Activate New General Ledger
Menu Path
IMG - Financial Accounting - Financial Accounting Global Settings - Activate New General Ledger
T Code - FAGL_ACTIVATION

Select the checkbox in this screen. As a result

On activation a new menu path is added to the system Financial Accounting (New)
The New GL tables are activated FAGLFLEXT is the table for New GL.

Define Ledger for General Ledger (New)

Menu Path
IMG - Financial Accounting (New) - Financial Accounting Basic Settings(New) - Ledger - Ledger - Define
Ledgers for General Ledger
This activity defines the ledgers used for GL Accounting. SAP delivers a standard totals table for use with GL
- FAGLFLEXT.

There are two different types of ledgers

1. Leading Ledger
2. Non-Leading Ledger
The leading ledger reflects the accounting principle of the consolidated financial statement. It is integrated
with all the subsidiary ledgers. One ledger is identified as the leading ledger by checking the box on the
right of the screen above. The leading ledger naturally inherits the global settings of the company code.

The Non-Leading Ledgers are called Parallel Ledgers. These ledgers are specific to each company code,
based on local accounting principles, for instance.

Assign Company Code to a Fiscal Year Variant

Menu Path
IMG - Financial Accounting (New) - Financial Accounting Basic Settings (New) Ledger - Fiscal Year and
Posting Periods Assign Company Code to Field Status Variants

Establish a relationship between company code and fiscal year variant.

Define Activate Additional Ledgers

Menu Path
IMG - Financial Accounting (New) - Financial Accounting Basic Settings(New) - Ledger - Ledger - Define
Activate Additional Ledgers

Define the Non-Leading Ledgers through this IMG activity. It is possible to define additional currencies in
this step. The basic currency of the ledger will always be the company code currency.
However, it is possible to define an independent Posting Period Variant for the non-leading ledger, if left
blank it mirrors the variant in the leading ledger.

Define Currency of Leading Ledgers

Menu Path
IMG Financial Accounting (New) - Financial Accounting Basic Settings (New) - Ledger - Ledger - Define
Currency of Leading Ledgers

The local currency reflects the settings in the Company Code.

It is possible to define one or two other currencies apart from the 1st local currency.
We need to define two elements per company code for each additional currency -

1. Currency Type
2. Exchange Rate Type

Define Segment
Menu Path
IMG - Enterprise Structure - Definition - Financial Accounting - Segment

Define segments to enable build relationship with the profit centre master record. We can identify a
segment available in this table in the profit centre master record. The system derives segment on the basis
of this relationship.

Define Document Splitting Char. for GL Accounting

Menu Path
IMG Financial Accounting (New) - General Ledger Accounting (New) - Business Transactions - Document
Splitting - Define Document Splitting - Characteristics for General Ledger Accounting

Define the characteristics to be used to derive document splitting

-

Select the characteristics that need a zero balance setting

Identify partner fields to record sender/receiver relationship for the clearing lines generated
in the document
Select the characteristics (if any) which may be identified as a required
entry field by the system

Pre-requisite
The specified characteristics should be maintained in at least one of the ledgers

Activate Document Splitting

Menu Path
IMG - Financial Accounting (New) - General Ledger Accounting (New) - Business Transactions - Document
Splitting - Activate Document Splitting

SAP provides a standard splitting method that is recommended for use. It is possible to define and assign
customized methods.
The node is under Extended Document Splitting - Assign Splitting Method.
It is also possible to exclude company codes from document splitting. This would limit the posting of cross
company code transactions between company codes having different splitting settings.

Specify Account Assignment Types for Objects

Menu Path
IMG Financial Accounting (New) - Asset Accounting - Integration with General Ledger - Additional
Account Assignment Objects Specify Account Assignment Types for Account Assignment objects

Assign Account Assignment Types (APC Balance Sheet Posting/Account Assignment of Depreciation) to
Objects, depending on
i)
Company Code
ii)
Depreciation Area
iii)
Transaction Type
In case both types are needs to an object, then make at least two table entries for the account assignment
object. A generic entry is possible by using an asterisk (*) for the transaction type. In such an event, the
system uses the account assignment type selected for all transaction types for an account assignment
object (per company code and depreciation area)

Define Account Determination for Real Time Integration

Menu Path
IMG - Financial Accounting (New) - Financial Accounting Basic Settings (New) - Ledger - Ledger - Account
Determination for Real Time Integration - Define Account Determination for Real Time Integration

Identify and populate the account for reconciliation posting

Define Document Splitting Characteristics for Controlling

Menu Path
IMG - Financial Accounting (New) - General Ledger Accounting (New) Ledger - General Ledger
Accounting (New) Business Transactions - Document Splitting - Define Document Splitting
Characteristics for Controlling

Select characteristics which are used by Controlling. These characteristics do not apply to the General
Ledger.
The system splits line items in the following processes Clearing of Vendor/Customer Items
Cash Discount Paid
Cash Discount Received
Lost Cash Discount
Clearing of Open Items
Realized Exchange Rate Differences

Foreign Currency Valuation for Open Items

Loss / Profit from Foreign Currency Valuation
Flat-Rate Individual Value Adjustment for Vendor/Customer Items
Expenses / profit from individual value adjustment

Define Post Capitalization of Cash Discounts for Assets

Menu Path
IMG - Financial Accounting (New) - General Ledger Accounting (New) Ledger - General Ledger
Accounting (New) - Business Transactions - Document
Splitting - Define Post Capitalization of Cash Discounts for Assets

Define the behaviour of Cash Discount posting in the case of asset related invoices. In case this setting is
active, the system capitalizes the discount instead of posting to the cash discount account.
Pre-requisite
Activate Document Splitting

Define Variants for Real Time Integration

Menu Path
Financial Accounting (New) - Financial Accounting Basic Settings (New) - Ledger - Ledgers - Real Time
Integration of Controlling with Financial Accounting - Define Variants for Real Time Integration

Define variants for real time integration between FI and CO.

Assign Variants for Real Time Integration to Company Codes

Menu Path
Financial Accounting (New) - Financial Accounting Basic Settings (New) - Ledger - Ledgers - Real Time Integration of Controlling with Financial Accounting - Assign Variants for Real Time Integration to
Company Codes

It is possible to assign more than one company code to the variant. However, if a variant is not assigned to
a company code then real time integration is not active for that company code.

Classify G/L Accounts for Document Splitting

Menu Path
Financial Accounting (New) - General Ledger Accounting (New) - Business Transactions - Document
Splitting Classify G/L Accounts for Document Splitting

This is the table which is used by the system to analyse and split line items, wherever necessary. The classification is
determined on the basis of the item category assigned to the account.
Assign the following accounts
Revenue account
Expense account
Bank account/cash account
Balance sheet account
The system understands the rest of the accounts automatically, so no assignment is required.

Define Valuation Area

Menu Path
Financial Accounting (New) - General Ledger Accounting (New) - Periodic Processing Valuate - Define
Valuation Area

This activity determines the valuation area for PEC activities. Valuation areas are used to address the need
for different valuation approaches and post values to separate accounts.

Define Valuation Methods

Menu Path
Financial Accounting (New) - General Ledger Accounting (New) - Ledger - Periodic Processing - Valuate Define Valuation Methods

The valuation method is defined through this activity. Each valuation area must be assigned a valuation
method.

Assign Scenarios and Customer Fields to Ledgers

Menu Path
Financial Accounting (New) - Financial Accounting Basic Settings (New) Ledger Ledgers - Assign
Scenarios and Customer Fields to Ledgers

Scenarios, Customer Fields and Versions are assigned to the ledger in this step.

Scenarios determine the fields to be updated in a ledger, for a posting from the other
modules/application components

Customer Fields can be added to the ledger once they are defined

Versions settings determine the nature of postings to a ledger

Define Accounting Principles

Menu Path
Financial Accounting (New) - Financial Accounting Basic Settings (New) Ledger - Parallel Accounting Define Accounting Principles

Define accounting principles to this table, for subsequent assignment to ledger groups

Assign Accounting Principles to Ledger Groups

Menu Path
Financial Accounting (New) - Financial Accounting Basic Settings (New) Ledger - Parallel Accounting
Assign Accounting Principles to Ledger Groups

Assign Accounting Principles to Ledger Groups.

Define Document Types for Entry View in One Ledger

Menu Path
Financial Accounting (New) - Financial Accounting Basic Settings (New) - Document - Document Types Define Document Types for Entry View in One Ledger

This is a setting that is only required for non-leading ledgers which are selected as representative ledgers
for a ledger group.

Transfer Balance Carry Forward

Menu Path
Financial Accounting (New) - General Ledger Accounting (New) - Preparation for Productive Start - Data
Transfer - Balance Carry Forward - Transfer Balance Carry Forward

The program can be used to generate an opening balance for New GL by transferring the balance in a
ledger in conventional GL to a ledger in New GL
Balances can be brought forward from the following ledgers

Ledgers in classic General Ledger Accounting

Parallel currency ledgers in classic General Ledger Accounting
Cost-of-sales ledgers
Profit center ledgers
User-defined FI-SL ledgers

Create GL Line Items and Bal. Carry Forward. (Prior Year)

Menu Path
Financial Accounting (New) - Financial Accounting General Ledger (New) - Preparation for Productive
Start - Migration of Existing SAP Data Migration Tools - Open Item from Prior Fiscal Year - Create
General Ledger Line Items and Balance Carry Forward

Create a Line Item for Open Items from previous year, when migrating to New GL

Transfer Documents to New General Ledger Accounting

Menu Path
Financial Accounting (New) - Financial Accounting General Ledger (New) - Preparation for Productive
Start - Migration of Existing SAP Data - Migration Tools - Document Transfer from Current Fiscal Year Transfer Documents to New General Ledger Accounting

Define and Assign Migration Plan

Menu Path
Financial Accounting (New) - Financial Accounting General Ledger (New) - Preparation for Productive
Start - Migration of existing SAP Data - Define and Assign Migration Plan

Create a Migartion Plan for Assignment to Company Code, Ledger and Fiscal Year Variant

Assign the migration plan.

Activate Migration Plan Manually

Menu Path
Financial Accounting (New) - Financial Accounting General Ledger (New) - Preparation for Productive
Start - Migration of existing SAP Data Activate Migration Plan Manually

Execute Migration Cockpit

Menu Path
Financial Accounting (New) - Financial Accounting General Ledger (New) - Preparation for Productive
Start Migration of existing SAP Data - Execute Migration Cockpit

For migrating with Split lines choose the second radio button.